Lightstream Announces Closing of $378 Million Asset Sale

CALGARY, ALBERTA–(Marketwired – Oct. 1, 2014) – Lightstream Resources Ltd. (the “Company” or “Lightstream”) (TSX:LTS) is pleased to announce the closing of our previously announced agreement with Crescent Point Energy Ltd. to sell the remaining assets in our southeast Saskatchewan Conventional business unit for gross proceeds of $378.4 million. Proceeds include cash consideration of $375 million (before customary adjustments) and three key parcels of Bakken rights valued at $3.4 million that will enable us to accelerate the expansion our Creelman enhanced oil recovery (“EOR”) project.

Further positive attributes of this transaction include: the elimination of $38.5 million of future abandonment and reclamation liabilities on our balance sheet to reflect the disposition of approximately 450 net wells and associated facilities; a reduction in our capital expenditure guidance for 2014 by $15 million; and the elimination of future regulatory compliance costs associated with sour gas venting at these properties.

Consistent with other divestment activity in 2014, we applied cash proceeds to reduce corporate debt which, pro forma June 30, 2014, and following the transactions to date, is approximately $1.5 billion. The amount drawn on our secured term credit facility is now approximately $500 million, leaving $650 million of available liquidity under the facility.

With our balance sheet strengthened and divestiture targets exceeded, we remain focused on operational efficiency and the effective deployment of capital in our core operating areas. We currently have 3 rigs drilling in our Cardium business unit and a 4th rig active in our Bakken business unit. We are also on target to commence natural gas injection in two further patterns in our Bakken EOR initiative before year end.

Lightstream Resources Ltd.is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. Lightstream is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with other emerging resource play opportunities. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.

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Forward-Looking Statements.Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to the anticipated expansion of our enhanced oil recovery operations, reduction of future abandonment and reclamation liabilities and future regulatory compliance costs, proposed exploration and development activities and timing of certain projects. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning prevailing commodity prices and economic conditions, the success of future drilling, completion, recompletion and development activities, the performance of new and existing wells, the availability and cost of labour and services, timing of pipeline and facilities construction, access to third party facilities and weather and access to drilling locations. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, risks that asset dispositions cannot be completed, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, Lightstream assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

BOEs. Natural gas volumes have been converted to barrels of oil equivalent (“boe”). Six thousand cubic feet (“Mcf”) of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.